NewsCorporate ActionsNCLT Approves Reliance Retail's Rs 171.38 Crore Resolution Plan for Future Supply Chain SolutionsNCLT Approves Reliance Retail's Rs 171.38 Crore Resolution Plan for Future Supply Chain Solutions
The NCLT Mumbai has approved Reliance Retail Ventures Limited's resolution plan for Future Supply Chain Solutions Limited. The plan involves a total resolution amount of Rs 171.38 crore, representing a 19.15% recovery of total admitted claims. The plan received 91.76% approval from the Committee of Creditors and is to be implemented within 90 days. The distribution includes Rs 156.10 crore for secured financial creditors, Rs 2.27 crore for unsecured financial creditors, and allocations for operational creditors, workmen, and employees. A Monitoring Committee will oversee the implementation.
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The National Company Law Tribunal (NCLT) Mumbai has given its nod to Reliance Retail Ventures Limited's resolution plan for Future Supply Chain Solutions Limited , marking a significant development in the insolvency proceedings of the logistics company.
Key Highlights of the Resolution Plan
- Total Resolution Amount: Rs 171.38 crore
- Recovery Rate: 19.15% of total admitted claims
- CoC Approval: 91.76% voting share in favor
- Implementation Timeline: Within 90 days of NCLT approval
Financial Details
| Particulars | Amount (in Rs crore) |
|---|---|
| Total Admitted Claims | 894.76 |
| Resolution Amount | 171.38 |
| Fair Value | 170.69 |
| Liquidation Value | 133.35 |
Distribution of Funds
The resolution plan provides for the following distribution:
| Stakeholder Category | Amount (in Rs crore) |
|---|---|
| Secured Financial Creditors | 156.10 |
| Unsecured Financial Creditors | 2.27 |
| Operational Creditors (Government) | 5.82 |
| Workmen and Employees | 1.60 |
| Other Operational Creditors | 0.25 |
| Other Debts and Dues | 4.00 |
Implementation and Monitoring
A Monitoring Committee will be constituted to oversee the implementation of the resolution plan. It will comprise:
- The Resolution Professional
- Two nominees from approving financial creditors
- Two nominees from Reliance Retail Ventures Limited
Impact on Stakeholders
- Employees and Workmen: The plan ensures payment of dues to workmen and employees.
- Operational Creditors: Will receive payments as per the approved plan.
- Financial Creditors: Both assenting and dissenting secured financial creditors will receive equal treatment.
Legal Implications
- The resolution plan will be binding on all stakeholders, including the corporate debtor, employees, creditors, and government authorities.
- All claims not part of the resolution plan will stand extinguished upon NCLT approval.
- The moratorium under Section 14 of the Insolvency and Bankruptcy Code ceases to have effect from the date of approval.
This NCLT approval marks a crucial step in resolving the insolvency of Future Supply Chain Solutions and potentially reviving its operations under new management. The implementation of the plan within the stipulated 90-day period will be closely watched by all stakeholders in the industry.
Historical Stock Returns for Future Supply Chain Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.96% | +20.61% | +11.34% | +27.31% | +51.93% | -96.82% |
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